A firm can grow more rapidly if (consider each in isolation):

Question

Quizplus · Accepted Answer

A larger profit margin allows a firm to generate more earnings from its sales, providing more internal funds for growth. Paying larger dividends would reduce the funds available for reinvestment, using less debt might limit growth if the firm cannot access enough equity financing, and a larger asset to sales ratio could indicate inefficiency in using assets to generate sales, potentially slowing growth.

A Firm Can Grow More Rapidly If (Consider Each in Isolation)